Posts in Category: Insights

Investment Peer Analysis – A Definitive “Best Practice”  

Our research suggests that the returns of more than 80 percent of the investment portfolios of small and mid-size foundations, endowments and nonprofit organizations have NOT maintained their inflation adjusted purchasing power (net of spending and investment expenses) over the past decade.1 Furthermore, we estimate that more than two-thirds of such organizations’ investment portfolios have underperformed their market index benchmarks in recent years.2  These challenging odds suggest that we as fiduciaries have an increasing obligation to be better informed and to make better investment decisions. 

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January 6, 2017 Categories: Insights

Investing with an “Infinite” Time Horizon 

“One of the most important decisions the Investment Steward has to oversee is the determination of the portfolio’s time horizon.” Center for Fiduciary Studies

...As Board members of foundations, endowments and not-for-profits (“FENP”), we typically serve in that role for a brief season in the perpetual lives of these organizations. These seasons are most commonly defined either by “term limits” as mandated by our Board charters or self-imposed limits as we often choose to “move on” to other organizations as our interests evolve. Meanwhile, we are legally bound by a duty of loyalty and prudence as prescribed by the Uniform Prudent Management of Institutional Funds Act (UPMIFA). We are compelled to apply our investment expertise and experiences to a process that is designed to address the long-term objectives and time horizon of the institutions we serve - even when this pursuit is contrary to the manner in which we manage our personal investments.

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August 17, 2016 Categories: Insights